Complete Guide to Building a Custom Home in Pacific Heights

Why Build a Custom Home in Pacific Heights?

Pacific Heights is, by many measures, San Francisco’s most desirable residential address. The neighborhood occupies a ridge along the city’s northern slope, with unobstructed views of the Golden Gate Bridge, the Bay, Alcatraz, and the Marin Headlands. Its streets are lined with some of the finest residential architecture in the western United States, from Victorian mansions and Edwardian townhomes to mid-century modern residences and contemporary new construction.

The neighborhood sits between the Marina District to the north, Japantown to the south, the Presidio to the west, and Nob Hill to the east. Union Street, Fillmore Street, and Sacramento Street provide walkable access to boutique shopping, dining, and cultural amenities. The Presidio and its trails are minutes away on foot.

For homeowners who want to live in the heart of San Francisco with space, views, and architectural quality, building a custom home in Pacific Heights is the path to getting exactly what you want. But this is urban construction in one of America’s most regulated and expensive cities. Understanding the planning process, construction logistics, and cost realities before you begin is essential.

For a step-by-step overview of the full building process, see our custom home building process guide.

Neighborhood Overview

Pacific Heights has a population density typical of urban San Francisco, but its residential streets feel more spacious than most city neighborhoods. The combination of wider streets, larger lots (by SF standards), mature trees, and the neighborhood’s elevated position creates an open, airy atmosphere.

Property values in Pacific Heights are among the highest in California. Single-family homes regularly sell for $5 million to $20 million, with landmark properties exceeding $30 million. The market is driven by limited supply (most homes are established and owned long-term), exceptional views, and the neighborhood’s prestige.

The housing stock includes:

• Victorian mansions (1880s-1900s). Grand homes with ornate facades, high ceilings, and period details.
• Edwardian homes (1900s-1920s). Similar scale with cleaner lines and open floor plans.
• Mediterranean and Tudor (1920s-1940s). Stucco, tile roofs, and courtyard designs.
• Mid-century and contemporary. Newer construction and significant renovations from the 1960s onward.

Custom home opportunities arise when older homes on premium lots no longer justify renovation, and the land value supports teardown-rebuild economics.

The San Francisco Planning Process

Building a custom home in Pacific Heights means working within the San Francisco Planning Department’s review framework. This is a city process, not a separate municipal jurisdiction, which comes with both advantages (professional, well-documented procedures) and challenges (bureaucratic layers, political dynamics, and neighbor influence).

Building Permit Application

All new construction requires a building permit from the San Francisco Department of Building Inspection (DBI). Before DBI issues a permit, the Planning Department must sign off on the project’s compliance with the San Francisco Planning Code.

Notification and Discretionary Review

For new construction or major alterations in residential areas, the Planning Department sends notification to neighbors within 150 feet of the project. Neighbors have 30 days to review the plans and submit comments.

If a neighbor objects, they can file a Discretionary Review (DR) request. This triggers a public hearing before the Planning Commission, where the project is evaluated for its impacts on neighborhood character, views, light, and air. The commission can approve the project, approve with conditions, or deny it.

DR hearings are a significant wildcard in Pacific Heights construction. The neighborhood has engaged, well-resourced residents who are protective of their views and their neighborhood’s character. Projects that are perceived as too large, too tall, or too modern for the context can face organized opposition.

Strategies for Smooth Review

• Pre-application meeting. Meet with Planning Department staff before finalizing design to understand potential issues.
• Neighbor outreach. Engage adjacent and nearby property owners early to explain your project and address concerns proactively.
• Contextual design. Demonstrate that your home responds to the immediate streetscape in massing, height, materials, and architectural language.
• View analysis. If your project could affect a neighbor’s view, prepare a view analysis showing the impact and any mitigation measures.

Zoning and Development Standards

Height Limits

Most of Pacific Heights falls within 40-foot height districts. Some blocks are zoned for 35 feet or 50 feet. The specific height limit for your parcel is determined by the city’s Height and Bulk District Map.

In practice, building to the maximum allowable height often triggers neighbor scrutiny, particularly if the added height blocks views. Some homeowners choose to build slightly below the maximum to reduce opposition.

Lot Coverage and Open Space

San Francisco’s planning code requires rear yard open space on residential lots, typically 25 to 45% of the lot depth. This requirement preserves mid-block open space and prevents lot-line-to-lot-line construction.

Setbacks

Front setbacks vary by block. The planning code generally requires new construction to align with the average front setback of the adjacent buildings. Side setbacks are not typically required in RH-1 (Residential, House, One-Family) zones, but property line construction requires fire-rated walls.

Floor Area

San Francisco does not use a traditional FAR calculation for single-family homes. Instead, the building envelope is defined by height limits, setbacks, rear yard requirements, and lot coverage limits. Within that envelope, you can build as much livable space as the lot allows, subject to design review.

View Corridors and Neighbor Relations

Views are Pacific Heights’ most valuable commodity, and they are the most frequent source of conflict during the planning process.

The View Issue

San Francisco does not guarantee views. There is no legal right to an unobstructed view. However, the Planning Commission considers view impacts as part of discretionary review, and significant view blockage can result in project modifications or denial.

Practical Approach

The most effective approach is to design with neighbor views in mind from the start. Stepping back upper floors, using lower roof profiles in strategic locations, and positioning the massing to minimize view obstruction are all design strategies that reduce conflict and speed the approval process.

Investing in a professional view analysis early in design is worthwhile. The analysis documents existing views from neighboring properties and simulates the impact of the proposed construction. This evidence is valuable both in neighbor conversations and at Planning Commission hearings.

Cost Expectations

All pricing is approximate, reflects 2026 Bay Area market conditions, and is subject to change. Every project is unique. Final costs are determined on a project-by-project basis during our design phase.

Custom home construction in Pacific Heights costs $500 to $1,000+ per square foot in 2026, making it one of the most expensive residential construction markets in the United States.

What Drives Costs

• San Francisco labor. Construction labor in San Francisco is the most expensive in the Bay Area, driven by union requirements on some projects, high prevailing wages, and strong demand for skilled tradespeople.
• Urban site logistics. Pacific Heights lots have no staging areas. Materials must be delivered on tight schedules, equipment like cranes requires street permits, and parking for construction workers is a daily challenge. These logistics add 10 to 20% to construction costs compared to suburban sites.
• Complex permitting. The SF planning and permitting process involves multiple departments, multiple review cycles, and potential DR hearings. Professional fees for planning consultants, expediters, and legal counsel are higher than in suburban jurisdictions.
• Luxury finish expectations. In a neighborhood where existing homes feature marble, custom millwork, designer fixtures, and whole-home automation, new construction must match or exceed this standard.
• Structural complexity. Urban lots in Pacific Heights often involve party-wall construction, below-grade garages, complex foundation work on fill soils, and seismic upgrades that add structural engineering costs.
• Demolition costs. Tearing down an existing structure in San Francisco involves asbestos and lead paint abatement, structural shoring of adjacent buildings, noise and dust mitigation, and haul-away logistics in a dense urban environment. Budget $80,000 to $200,000+ for demolition.

Budget Framework

For a 4,000 sqft custom home in Pacific Heights:

• Land (teardown): $5M to $15M+
• Construction: $2M to $4M+
• Architecture, engineering, permits: $200K to $500K
• Planning consultants and expediting: $30K to $80K
• Contingency (10%): $200K to $400K

Total project budgets (excluding land) typically range from $2.4M to $5M+ for construction and soft costs.

Building Timeline

Custom home projects in Pacific Heights take 24 to 36 months from design kickoff to move-in. This is longer than most suburban Bay Area custom homes due to the extended planning review process.

• Design and engineering: 3 to 6 months
• Planning review and entitlements: 3 to 12 months (highly variable based on DR)
• Building permit plan check: 3 to 6 months
• Construction: 14 to 20 months

The planning review phase is the most unpredictable. A straightforward project with no DR request can move through in 3 to 4 months. A contested project that goes to a Planning Commission hearing can take 8 to 12 months or longer.

Architectural Styles

Pacific Heights has one of the richest architectural landscapes in San Francisco. New construction should respond to this context.

Victorian and Edwardian reinterpretation. Modern construction that references the proportions, bay windows, and cornice lines of the neighborhood’s historic homes while incorporating contemporary interior layouts and systems. A strong choice on blocks dominated by period architecture.

Contemporary. Clean lines, large glazing, and modern materials. Works best on blocks that already include mid-century or contemporary homes, or on prominent corners where a distinctive design makes sense. Be prepared for additional planning scrutiny.

Transitional. Traditional massing and street-facing proportions with modern interiors. The safest choice for moving through the planning process, as the exterior reads as contextual while the interior delivers the open, light-filled spaces homeowners want.

Mediterranean. Stucco, tile, arched windows. A longstanding presence in Pacific Heights that blends with both older and newer neighbors.

Key Areas Within Pacific Heights

Upper Pacific Heights

The highest elevation, along Broadway and Pacific Avenue between Divisadero and Fillmore. The premium addresses with the best views. Also the most expensive land and the highest construction costs. Homes here are the largest in the neighborhood, with some single-family residences exceeding 8,000 square feet.

Lower Pacific Heights

The southern slope toward Japantown, along Pine, Bush, and Sutter Streets. More accessible pricing (relatively speaking), a mix of single-family homes and multi-unit buildings, and proximity to Japantown’s restaurants and cultural attractions.

Broadway Corridor

Broadway between Baker and Fillmore is one of the most prestigious addresses in San Francisco. Large lots, grand homes, and panoramic Bay views. Teardown candidates here command $8M to $15M+ for the land alone. This is the apex of Pacific Heights real estate.

Fillmore Street Corridor

Properties near Fillmore Street benefit from walkability to one of San Francisco’s best shopping and dining streets. Lots tend to be narrower and more urban in character. Townhouse-style custom homes with underground parking are a common format.

Special Considerations

Parking

Off-street parking is highly valued in Pacific Heights. Most new construction includes a garage (typically accessed from the street level or below grade). The garage adds structural complexity but is essential for both livability and resale value.

Below-Grade Space

Many Pacific Heights custom homes include below-grade levels for garages, media rooms, wine cellars, or home gyms. Building below grade in San Francisco requires careful attention to waterproofing, soil conditions, and the proximity of adjacent structures. Underpinning neighboring foundations may be required, adding cost and complexity.

Seismic Engineering

San Francisco’s seismic requirements are among the most stringent in California. All new construction must meet current California Building Code seismic standards, and the city’s Department of Building Inspection reviews structural plans closely.

Historic Considerations

While Pacific Heights is not a designated historic district, individual properties may be identified as significant. Demolishing a potentially historic structure can trigger additional review under CEQA. A historic resource evaluation may be required before demolition is approved.

Why Build with Custom Home Design and Build

Pacific Heights projects demand a builder who can handle urban construction logistics, navigate San Francisco’s complex planning process, and deliver luxury-level finishes. Custom Home Design and Build brings this capability to every project.

Our two-phase process is designed for the Pacific Heights environment. In Phase 1, we handle all design, planning department coordination, neighbor outreach preparation, engineering, and permitting. You see your home in 3D, approve every detail, and receive locked-in construction pricing before construction begins. In Phase 2, we manage the construction with the precision that urban sites demand.

If you are considering a custom home in Pacific Heights, we would welcome the opportunity to evaluate your property, discuss the planning process, and show you what is achievable.

Contact us to start the conversation.